Legal Question in Real Estate Law in Florida

Re: Can I sell FL house to my son below market without Gift Tax

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This is more of a tax question than a real property one, however, I will take a stab at answering it.

You can sell the property for whatever price you like. The Internal Revenue Service generally will not know about a transfer. You will invite closer scrutiny if you report selling it at a loss which can only be done if you held it out as investment property.

Of course, if it was held out as investment property, then you would have to take into consideration any depreciation or other writeoffs you have already taken so there might not be a loss anyway.

By taking both steps, you might end up getting both your son and yourself audited by the Internal Revenue Service. Only you can decide if it is really worth taking that risk.

Scott R. Jay, Esq.